U.S. 30-Year Mortgage Rates Rise to Highest Since August

The average rate for a 30-year fixed mortgage was 3.56
percent in the week ended today, up from 3.53 percent and the
highest level since Aug. 30, McLean, Virginia-based Freddie Mac
said in a statement. The average 15-year rate held at 2.77
percent.

Interest rates at near-record lows and a shrinking supply
of existing homes on the market are supporting demand for new
houses. Builders broke ground in January on the most U.S.
single-family homes since July 2008 and permits for future
construction climbed, figures from the Commerce Department
showed yesterday.

“Mortgage rates are still very, very low,” Celia Chen, a
housing economist at Moody’s Analytics Inc. in West Chester,
Pennsylvania, said yesterday in a telephone interview. “They’re
likely to stay low at least another year.”

The average 30-year mortgage rate dropped to a record 3.31
percent in November, according to Freddie Mac. (FMCC) The 15-year rate
fell to 2.63 percent, also the lowest on record.